How to Easily Raise Business Capital

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How to Easily Raise Business Capital

Do you intend to start a small business but you lack the necessary starting capital? Although financing a small business sometimes can be hectic, raising starting capital for your business is the most important part of growing any business. However, you must be careful of the approach you take towards achieving your goal – starting a small business.

Before you can raise capital for your business, a project or even an expansion, you must calculate what your financial needs are. As an upcoming businessperson, you should show your confidence in your business by injecting into the firm up to ten percent of the required capital from your savings. You can borrow the remaining capital required from a local licensed money lender.

In business, there are three significant financial needs i.e. short, medium and long-term financial needs. There are different sources from which you can choose to obtain a loan for any of these financial needs. However, the most convenient way to raise business capital for a small business is by engaging the services of a private legal money lender.

Short Term Business Capital

Short-term business capital is money that is needed to meet the business’s current financial needs. Such needs may include any of the following: salaries and wages, repair expenses, payment of taxes, payment of creditors and many others.

The need for current business capital may be due to low sales income and more purchases, or you sold more on credit to your trusted customers while you paid in cash for all your purchases.

Whatever might be the cause of your short-term financial needs of your business, you can obtain a short-term loan from a trustworthy legal money lender to sort your financial needs.

Medium Term Business Capital

Medium term finance is money required to meet the 1 to 5 year financial needs of the business. The medium-term financial needs may be money that your business needs for replacement of a broken machine or plant, modernization of the business premises or balancing and re-engineering of the firm.

A medium term loan will help you to meet the medium-term business projects within the stipulated time frame. For that kind of financial needs, you can make arrangements with a licensed money lender, and he will help you attain your business goals for you to repay at a later date.

Long Term Business Capital

Long-term business finance is the kind of capital that is permanent in nature or more than five business years. You need this kind of money when you intend to start a new plan of activities, or a long-term project that you want to undertake.

Long-term business capital can also be required when you have major structural changes for your business or significant modernization expenses.

The primary source of long-term business capital is mostly from established financial institutions like licensed money lenders among others.


In business, there are no hard and fast rules that differentiate between short, medium and long-term business capital. However, you can always turn to a licensed money lender for any of your business’s financial needs to find help.